Quickflix (QFX)

The future of movie rental company
Quickflix
is in serious doubt after its chief executive and chairman resigned this week. The departure of Chris Taylor and Justin Milne respectively comes days after Henry McGee, the executive representing major shareholder and US movie studio HBO, stepped down. The Australian Financial Review understands that senior management clashed over the direction of the company, which voluntarily suspended itself from listing according to a statement on November 15. Quickflix faces a range of deep challenges to its business model of delivering rented movies to customers via internet downloads and posted Blu-ray discs and DVDs. Australians illegally download pirate movies at a relatively high rate and broadband speeds continue to be fairly slow. Quickflix is aiming for a November 29 re-listing while it works through a restructuring plan to cut costs and negotiates for funding.